Unidentified Analyst: So you make a good point and I read the same reports, but the general semiconductor industry reports basically more or less say that the improvement in 2024 is expected to come in the second half. Are you currently seeing improvement in the other floor or are your clients also saying, well, it’s probably going to be coming in the second half.
Daniel Baker: We are seeing the same thing that while the industry seems to be improving and sequentially rather than decreases, we’re seeing slight increases. So it’s not a booming industry, but it’s better. We’re facing fewer headwinds. That is what we’re seeing. And we do certainly look forward to a strong second half of the year if the industry forecasts are correct.
Unidentified Analyst: Okay, it’s good to hear that you’re already seeing improvement. Now you have a new networking isolator. Are you getting orders for networking for factory automation equipment?
Daniel Baker: We are and the specific new product we had extends our temperature advantage or speed advantage to high temperature products which was of interest to particular customers. It’s a very harsh environment sometimes in factories. So being able to withstand high temperatures and transmit very high speed is an important advantage. And as I mentioned, we have best-in-class products that can transmit very high amounts of data, 40 megabits per second, which is just an incredible amount of data in a relatively short time through a complex network protocol. So those are important products and they serve a growing market, the industrial internet of things. So we’re seeing some interest in them and we are optimistic about the future of those products.
Unidentified Analyst: And that is a new market for you, am I correct?
Daniel Baker: It’s an existing market for us. We’ve always been in factory automation for a long time, but there are certain applications that we couldn’t get into because of the temperature limitations. So we meet the industry standard 85 degrees Celsius temperature requirements, but we have customers who are interested in 125 Celsius, which is 257 Fahrenheit. That’s pretty hot. But there are applications that require that. And even if they don’t require it, it’s a figure of merit that some of our customers want to be sure that our products have lots of margin and design margin and that they aren’t going to fail even under extremely harsh conditions.
Unidentified Analyst: That’s good to hear. Good luck. Thanks.
Daniel Baker: Thanks Chris.
Operator: Thank you. I would now like to turn the call back over to Dan Baker for any closing remarks.
Daniel Baker: Well, thank you for the questions. We reported strong earnings for the quarter and an increase year-over-year in cash flow. We look forward to speaking with you again at our next earning call, which will be in early May to review the full fiscal year. Thank you again.
Operator: Thank you. Thank you for your participation. You may now disconnect.
